Finance

What are binary options scams in London?

Binary options are increasingly popular forms of trading where you place a bet on the price of an asset (a commodity, currency, indices) at some point in time.

Types of assets

Traditionally, there are two types of assets: “call” and “put”. A call option gives the buyer the right to purchase an underlying asset at its predetermined price (strike price) before or on the expiry date. A put option gives the buyer the right to sell an underlying asset. For example, if you think that Apple stock will be worth $570 by January 1st, 2023, you can buy one Apple stock in January 2023, call for $15.

If the price of Apple hits $570 on expiry day, your option will be worth $570 because you can sell it to someone for that price. If the price is below $570, then my option will expire worthlessly, and I will lose my initial investment of $15. Binary options are tradable assets that pay either a fixed amount or nothing at all (hence the name “binary”).

At the time of purchase, a buyer’s or seller’s right to acquire or sell an underlying asset is predetermined. Binary options give you fast returns and involve significant risks: there’s no lower loss limit and no upper limit of profit.

These are just another financial product you can trade to earn high returns for many Londoners quickly. London is full of professional traders who know the London markets inside out and have years of experience.

London binary options trading centres are filled with fast-talking, shady brokers who use shady tactics to convince Londoners to trade on their platform.

Common lies

These brokers have no scruples about making false promises or downright lies, so beware.

If you hear your broker saying something like, “If Apple hits $570 by January 1st 2014, then your option will be worth five grand”, then they’re lying – there’s no upper limit of profit. It is a red flag.

Other common lies include “Apple stocks hit $700 before the end of London trading hours every day” or “If you trade Apple stocks for me, I’ll double your money in London” – these are all lies.

The London trading hours have nothing to do with Apple stock price hitting specific points during London-time.

Fraudulent brokers will also encourage Londoners to make large deposits into their accounts, promising guaranteed returns.

These are much higher than the market rate but impossible to sustain over prolonged periods. Once you fall for this ploy, they’ll shut down their company and disappear with Londoner’s money.

Binary options scams use endless delay tactics when Londoners ask to withdraw their money, offering gifts or bonuses until Londoners forget about asking to withdraw their original funds in full.

These binary options scams are known for draining Londoners’ bank accounts because binary options traders lose interest in asking to withdraw their original funds after they’ve received the initial deposit.

London based binary scammers use these delay tactics, so Londoners won’t even realise for months that they’ve been scammed – it takes time for people to go through their financial records and see any irregularities.

London binary trading is exciting, but traders must be vigilant when choosing companies to trade with because many binary trading scams are out there.

Make sure you’re 100% certain of the legitimacy of the company you’re trading with before you start making high-risk trades.

If your broker tells you any lies or promises higher returns than what’s ordinarily possible, then walk away immediately. London binary options are no joke. Londoners must be vigilant.

In conclusion

If you want to stay safe when trading, Saxo is a London trading company that’s 100% transparent about its rates.

It offers Londoners guaranteed payouts on all trades at fixed rates, never scamming them out of their money.

It has a proven track record of honest trading with Londoners, and it trades money for Londoners instead of scamming them out of their savings.

For more information, visit their website here.